ENTREPRENEUR SPECIAL...LESSONS FROM A SERIAL ENTREPRENEUR ..ASHOK SOOTA

LESSONS FROM A SERIAL ENTREPRENEUR 

It’s More Important to Learn from Successes than Failures — as it Generates a Positive Mindset

Entrepreneurship is about balanced risk-taking, whereas creating a successful business requires many ingredients

In the venture community of Silicon Valley in the United States, I am told their most favoured investment candidates are failed entrepreneurs. I am not sure this is true, but presumably this is because the failure has generated a greater hunger to win and the entrepreneur would have learned from his or her mistakes. On the other hand, I can say from my personal experience in starting Happiest Minds that having a track record of success does make it easier to attract capital and talent. Besides, I am a firm believer that it is more important to learn from your successes than your failures — as it generates a positive mindset, increases organisational energy and commitment. Of course, it is important not to repeat your past mistakes — but beyond that there is no need to dwell on them. There are several unique pitfalls that a successful serial entrepreneur must guard against, most important of which is a sense of hubris that we are bound to succeed, failure is not a possibility. Also, it’s important to remember that what worked well in the past may not work now — because no two situations are the same, markets and competition change dramatically over time. These are some things I have to keep reminding myself and my team at Happiest Minds. Whether a person is a successful serial entrepreneur or otherwise, there are a few important observations for all entrepreneurs of things that are important, many of which are overlooked. Entrepreneurship is all about balanced risk-taking, whereas creating a successful business requires many ingredients. It is important for entrepreneurs to additionally don their leadership and managerial hats as soon as they start implementing their entrepreneurial idea. In the above context, I give below five important factors for success and a few things to avoid.

    Three Things to Avoid
    Business is about risks. Don’t, in the process, bet the company. It is very easy to do that in a startup. So take your risks, realise that everything will not succeed, but don’t bet the company. Don’t ever use inappropriate means to get ahead. This is fundamental. There has to be a philosophy in life — “If you achieve success through inappropriate means, it is not worthwhile and you can’t even call it success.” In an entrepreneurial set-up, avoid getting carried away with early successes or early failures. Remember, creating a successful organisation is a 5-10 year journey.
   

 Five Factors for Success

    Soundness of the  entry strategy:

    It  includes the ability to avoid a head-on clash with larger incumbents or, while you’re doing so, to exploit their weaknesses. Realise that even the largest players have their own weaknesses. There is a need to create an ecosystem of partners to multiply your strength even as you compete with larger entities in the market.

Organisation-building: This is the most fundamental thing, but still would come after strategy. It includes building your team, sharing wealth, creating an organisation that is run with the highest standards of corporate governance.

Focus on cash flows rather than profits: In a start-up, this becomes even more important because entrepreneurship requires doing more with less.

Identify weakest links: In running a business, we get focused on our strengths, which we should, but we should not overlook any area that is not functioning well since it comes in the way of success. It is important to build on your core competencies, but also to know you are as strong as your weakest link.

Timing is key: A CEO has to be like the conductor of a symphony. Timing may seem like luck, but you can play a huge part in making your luck. For example, you have to ask yourself why so many companies collapsed during the dotcom bust. Timing-wise they thought the boom would last forever.

Ashok Soota
CURRENT DESIGNATION
Executive Chairman, Happiest Minds
COMPANIES FOUNDED
MindTree and Happiest Minds, early stage president for Wipro Infotech
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